Customers differently track changing prices online affecting how retailers dynamically price

What is it about?

When interested in a potential purchase, different customers differently monitor the changing price online, causing retailers to use interesting dynamic pricing strategies. Simple markdown pricing that is unpredictable in the timing of the markdowns can benefit both retailers and customers, by allowing the retailer to profitably sell larger inventories to satisfy more customers. Lastly, incorporating how a customer browses the retailer's website into the retailer's targeting of customers is highly informative with simple metrics.

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Why is it important?

Customers increasingly complement their shopping experiences by using retailers' online channels to search for and monitor products, prices, and availabilities. We address this economically important behavior, in addition to the counterpoint that retailers increasingly track and analyze their customers' behaviors.